Quick Answer
A mortgage lender reviews your application, underwrites the loan, and provides the actual funds at closing. Unlike a mortgage broker, who shops your loan to others, the lender makes the final approval decision and services or sells the loan afterward.
- Role
- Underwrites and funds your loan
- Types
- Banks, credit unions, direct mortgage companies
- Makes final decision?
- Yes
- Different from a broker
- A lender funds the loan; a broker shops it
What a Lender Actually Does
From application to closing, your lender verifies your income, assets, and credit, orders the appraisal, and moves your file through underwriting. Once approved, the lender funds the loan at closing and either services it going forward or sells it to another company that will.
Different lenders specialize in different programs, from conventional and jumbo loans to FHA, VA, and USDA financing, so it's worth confirming a lender offers the program that fits your situation.
Choosing a Lender in Central Indiana
Local and regional lenders often bring faster communication and familiarity with Indiana closing customs, while larger national lenders may offer a wider menu of programs. Getting a pre-approval from your chosen lender early gives you a clear budget before you start touring homes.
Our agents work with local lenders regularly and can point you toward responsive options as part of your home search.
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Frequently Asked Questions — Mortgage lender
What's the difference between a lender and a broker?
A lender funds your loan directly and makes the final approval decision; a broker shops your application to multiple lenders on your behalf.
Can I switch lenders after getting pre-approved?
Yes, though it may mean restarting parts of the application and documentation process with the new lender.
Does my real estate agent choose my lender?
No. You choose your own lender, though your agent can share names of local lenders other clients have had good experiences with.
How long does it take a lender to close a loan?
Timelines vary by lender and loan type, but most conventional purchases close within a few weeks of a clean application.